expressing regret for things that he has said that may have caused personal pain. it's friday, august 19, 2016 and "squawk box" begins right now. gl bloelksgood morning, everybo i'm becky quick with joe kernen. andrew is reporting from the olympics in rio. we'll get to him in just a moment. in the meantime, check out the u.s. equity futures this hour. some relatively steep declines based on what we've seen recently. the dow is down 51 points. s&p down close to 7 and nasdaq down 13. at this point, the losses could push you into negative territory. if the nasdaq does finish on a

positive note, it would be the eighth week in a row it's done that. first time it's done that in 16 years. i should double-check any statistic. take a look at asia overnight. in japan, the nikkei was up .30%. shanghai up just slightly. and in europe in the early trading there some red arrows across the board. dax down .60%. cac in france is down .30%. ftse down one quarter of a%. as joe mentioned check out crude oil. crude oil unchanged right now. 48.22. we've been watching this closely. been seeing what's been happening. it has been picking ining up s >> two weeks ago. >> today's agenda on wall street. few more earnings reports to wrap up the week. deer, estee lauder.

foot locker. no economic data on the docket today. however, can be the 't go a day fed speak. late yesterday, john williams argued a september rate hike should be in place. suggesting the central bank job is still to take away the punch bowl of low rates. williams says he's not in a hurry to hike. still in a qa said the less son of history is if you leave that punch bowl out too long, the police come and break up the party. >> also said it didn't feel like a party, but having said that did remind me of the chuck prince we're still dancing. >> dallas president robert kaplan says the central bank has limited room to maneuver. suggests the rate of interest is lower than people think. making it a challenging time. the neutral rate is level of borrowing cost.

>> you remember this move started higher after we had the crappy job's report. somehow the notion they weren't going to raise was still good fuel for the move higher. and i think we still have this hope that some day when rates go up, it will be because of a stronger economy and the baton will be passed to the stronger economy. every time we think that's going to happen, the economy drops the baton. every time it looks like they're going to hike for a good reason, they take the baton away. the market has been weak the last three or four sessions because they might. >> when the minutes came out, the heaeeadline was you should e one on the table then 200 reasons why we won't. >> issues they don't give as much credit as they are considering internally. >> but the markets finished -- these guys are never. >> all i can think about is the

olympics and the relay where the women dropped the baton. >> it was not their fault. she got jostled. >> i've been going to bed at eight. >> really? >> yes. i saw last week when i was able to stay up. >> you didn't see usain bolt last night. >> i didn't stay up late enough for that. >> i did. it was fantastic. >> i saw trump. trump was interesting. we'll talk about that later. first thing i saw, i told you when i got in here, first thing i saw, you gene robinson, coping with a trumpier trump. he had written this -- he wanted to do the bannon. and he was like, last night trump came out like that and he must have been, oh, i wrote that -- you know, i worked hard on another hit piece on trump, i'm going to run it anyway. >> probably went to bed before.

>> i worked hard on my 18th or 19th hit piece of the month. >> that was -- look the page, they close that up earlier than page one. >> i really liked the latest head piece i'm going to run it anyway. in corporate news a word of a truce this morning. viacom and redstone agreed to terms of a settlement. this would end the battle for control over $40 billion empire. part of the agreement, viacom will leave and receive $72 million severance package. the deal will also end legal battles in multiple states over whether redstone had the mental capacity to make decisions. redstone controls 80% of the voting shares in viacom and cbs. red stone and daughter sherry are now in control over viacom future.

>> the good news is they're not going to battle this out in the court's. still, 72 million as severance package. >> is pretty good. >> yes. >> speaking of other arrangements and divorces and amicable. johnny depp. showed the blood from the finger, wrote billy bob's name and said i'm out of here. amber gets $7 million. everybody says she's a gold digger. you saw what she did? >> donated it. >> split it up between two charities. so now it's like sting sting. >> i think her career, i think it's worth not that she didn't do it out of her heart. $7 million is good. >> that speaks a lot. >> she can make that. >> when you start to talk about the payments, i thought you were going to bring up iran.

>> no, rkno. someone is not visiting louisiana. he's decided to visit the sun ravaged fareways to see the damage. >> anyway, i think you called -- called bush's behavior incomprehensible ineptitude for not going. >> at the time. that was something. i looked through the paper. i can't find that anywhere. maybe andrew knows something. >> andrew is down in rio. obviously andrew, there have been so many stories we're following there. we were talking about us sane bolt. the women's relay with the issues they ran into, but the bigger stories there making headlines around the world, as well. >> good morning. we do want to talk sports and we will in just a moment. to get everybody updated. continuing on the four members of the u.s. swim team. including ryan lochte.

claimed they were robbed over the weekend. now rio police holding a press conference here yesterday. saying there was no robbery. it was a fabrication and actually a act on vandalism on a gas station. now two of the swimmers involved in this, gunnar bentz and jack conger who had been taken off their flights wednesday, had their passports returned after providing statements to police. the two left rio last night. ryan lochte had returned home while the fourth team member, and this is an interesting new piece of news, reached an agreement with authorities and he will be allowed to go home from here after he pays $11,000 to a charity here in brazil. in response the u.s. oc which had been supporting the teammates thus far issued a statement overnight t. behavior of the athletes is not acceptable, nor does it represent the values of team usa or the conduct of the vast

majority of its members. we will further review the matter and any potential consequences for the athletes when we return to the united states. it went on to say and this is the important part for people here in rio, on behalf of the united states olympic committee, we apologize to our host rio and the people of brazil for this distracting ordeal in the midst of what should be a celebration of excellence. to bringing to close a bit of a soap opera that has distracted from the athletics. talking about the ath lexics. why don't we tell you about some of the excellence that did go on. you were talking about it moments ago. you didn't mention this one. it was the hottest ticket here in rio last night. down in copa cabana beach. winni inning gold in beach volleyball. fifth gold medal of the olympics and first gold in that event since 2004. and then becky mentioned it, jamaica usain bolt who turns 30

years old this weekend blowing away the competition in the 200 meter field. winning gold in 19.78 seconds. won the last two titles. has eight career medals and going for ninth tonight. you have to watch this one. he's going to be running the 4 by 100 relay. he was doing a dance before he started the race last night and take a look at this, the u.s. has won its 100 medal of the 2016 games. took gold and ashley spencer bronze in the women's 400 meter race. usa marking the fourth straight time that u.s. has won 100 medals or more at a summer olympics. then something i went to last night. the united states defeating france 86-67 in the women's basketball finals last night. advancing to the gold medal game on saturday. that will be against spain. u.s. will be going for sixth

straight gold medal. game is 48th straight olympic win and draining three pointers like nothing you have ever seen. coming up on "squawk box" later, we have nba commissioner adam silver going to join us in rio to talk usa basketball and what it means to nba and wnba and how they're moving the brand globally across the world. a lot is going on here and it's been a crazy 24 hours. >> cover of all the tabloids too, obviously. i'm kind of done with it. i understand what happened. they drank a lot of beer and stuff. they had to go to the bathroom something fierce at 6:00 a.m. doors locked. can't get in. break the door down. do stupid stuff. why would you then try to change -- why don't you just wake up and go oh, my god. did i do that. wow, i had too much to drink. we paid for the damage.

why then go say you stood up to some guy and i didn't get on the ground in the face of a cocked gun. why do that? >> the cover of the post says the ugly americans. >> gives egg s everybody a bad >> two pieces worth mentioning. one is that the security guards did brandish guns at some point. >> we saw that. >> not to suggest that is still a very different story. when you really think about what happened here, the first story on that sunday morning came out from lochte's mother. one of the things that's been surmised here. he effectively lied to his mother the first time. >> which you should never do anyway. >> once he mother went public then he was stuck. maybe it's one thing to lie to somebody else. once your tell your mother, your mother says it publicly. >> he added to it by going

public. >> look, rio has had enough issues. they don't need people making up stories about this stuff because the reality is really bad. >> doesn't mean there aren't issue there either. wait a second that would never happen or our -- i mean. >> it did happen to the gb guys, right? >> horrible sportsmanship and conduct. >> i know, but going after the so sharply like they did, now every single person who has read the articles about the "new york times" day one says it's not uncommon for people to pose as police or even the police themselves to be involved in crime in brazil. right? i mean the whole world has gotten a view of how bad the crime is there because of this. even though this was a lie. >> and then it gets politicized by both sides too. have you seen the huffington post's take? >> no. >> an example of white privilege. >> i saw that, yes, yes.

>> everything in the prism of where you are, right, andy? i thought you would like the jo johnny depp thing. if it wasn't ryan lochte, this would be your thing. >> i missed. we've been so in the head of what's going on here in rio and sports and trying to get our. >> she gave it all away. anyone who said she was shaking him down, she gave it away. >> pretty good. >> usain bolt, i hope it doesn't take away from his achievement, especially since he's basically a geezer. he's 29. >> 30 on sunday. >> big birthday party at the closing ser moeny for him. >> he has slowed down a bit. he was disappointed in that number. >> it's amazing. >> i saw him run in london and he like kind of jogged over the finish line and looked back and

waved. last night he had to work. >> two nights ago he did that as he was crossing for the 100 meter. >> you saw that great smile, great shot of him looking back. >> he's still pretty spry. when you get to 29. you sort of agree with me what i'm saying because you'll be 40 some day, my friend. >> very close to it. >> it will happen to you. >> it will happen quickly. >> see you guys in a bit. >> you two guys are going to eventually see that. >> never. >> i will see 50 some day. new data this morning on where investors are putting their money to work. u.s. based stock funds attracted 307 medical illion in the week. joining us now -- i don't want to be a creature of habit.

li lou, strategist at zrw trading and michael zen. >> you didn't think god father? >> no. >> you knew that was ted knight. >> yes. >> so tell me, he tells the truth. >> he doesn't bs. >> >> i keep telling him his name should be michael zen. he would be on the today show. let's get a michael zen. one letter. >> long-term at this point, we've seen a nice move up in the market. everybody who hasn't believed it along the way. now we're still overvalued. now rates mooigt go up. time to step back or add more.

>> seems like the federal reserve team is going for gold in olympic jawboning. they've been -- >> did you have this ready? when did you think of that? were you in the green room. no matter what i asked you, is this going to be the answer sdwl you inspired the zen in me and i just went with it. so i think that's the investors generally have been i think very fully aware markets have been fully valued and the rallies have left a lot of folks behind and brought pain as well as profit. we're beginning to see more inflows to equity funds, but not much. the federal reserve has sort of been in the hot spot. they're rate projections have not materialized. we have been worried. it's akin to watching the u.s. women's gymnastics team.

they're doing well, but you're nerve wracked the entire time. that's been the investor attitude. maybe the bell is going to miss. maybe the fed is going to get aggressive. maybe oil is going to slip down. that worrying effect may allow the rally. >> if enough people say that this is the biggest bond market bubble in history, and i guess if you get the negative rates, people wouldn't even have believed that. that does signify a pretty significant bond rally when you think it's going to end at zero and goes below that in terms of rates. can the stock market not be far behind it in terms of being overvalid or can the stocks be fine even though were in the biggest bubble of all time. >> i don't know i buy the biggest bubble of all time. >> singer said it, didn't he?

people are saying that. >> i know people are saying that. i've been hearing that since the beginning of 2010. i think one of the key issues in this kind of relates back to the fed is the low productivity growth and what that means for how strong gdp can grow and all those measures are coming down by the fed and so therefore, you know,ting much inflation and the key to the long end of the bond is inflation and inflation expectations. will this reflect back on the stocks, the slow growth hasn't affected the stocks. one of the things that's driven the stocks since the low in 09 is the fed. that's what makes the latest rally most interesting because the stocks have not been able to sustain in the rally without qe. now, this time in the mid july, we went above the previous high set last may. may of 2015. that's the thing i'm watching here. can the markets sustain without

the fed? we're getting that mixed message from the fed, i think, on the one hand you get guys like williams and dudly saying that oh the next rate hike is soon. we have to do it. we shouldn't stay so low and on the other hand one of the consistent messages from yellen this summer has been about this low productivity story and what that means for the neutral rate, pulling the rate as michelle said earlier t rate that neither helps nor hurts the economy. this neutral rate is down about 0 according to in real terms to yellen and that's not very far above where we are now. so on the one hand you have them talking about raising rates s o the other hand you have yellen suggesting that the distance they're going to travel is relatively short. >> okay. lou, thank you. michael, thank you. >> coming up, trump striking a new tone on the campaign trail. saying he regrets some of his

campaign rhetoric. stick around, we'll show you a trump that many thought you would never see. "squawk box" will be right back [announcisfona ses t e mm of auau ses ent e. ge$5onus o ctudi

. welcome back to "squawk box." the u.s. continues to deny the

r -- state spokesman say the money was withheld as leverage until the release of the americans. >> because we had concerns that iran may renig on the release, as well as some mutual mistress, we of course naturally and should be held at task if we didn't, sought to retain maximum leverage until after the americans we released. that was the top priority. >> said the government took advantage of opportunity to get american citizens back home. >> there's leverage and ran some as ransom. after the financial crisis, the democrats hate leverage. we're not awe llollowed to have lempk.

remember. >> what's the difference between extremely gross negligence? >> beauty in the eye of the beholder. >> i guess. you're going to talk about trump's new tone and first thing you said was kelly ann. you can kind of her her. >> she's really good. >> you heard the other day what she eats when she gets up in the morning. >> nails. >> she was in last week. >> she's coming in next week. >> then i immediately thought i was going to say why don't you get a woman in there things get turned around immediately. what am i saying? then i get worried about -- >> you notice the other side didn't say that. >> right. >> i'm not making the case for hillary. just shows you the danger of generalization. you can't just generalize. you can't generalize. >> or put people in categories. >> exactly. which i'm not going to do. i did think that maybe it was her too because she's.

>> that speech was -- he had those people going too. >> this is a trump we have not seen before. >> is this a message he can stay on? >> i've got jabbers here. i wish it was harwood, but -- >> we are going to talk more about the campaign. eamon jabbers is here. >> i won't take it personally. >> you're probably lucky. eamon has been following this from washington. how do you see things. >> reporter: we saw in north carolina last night aless trump. this is the first time he's spoken since overhauling the campaign leadership. installing steve bannon and kelly ann conway. what we saw was a donald trump we haven't seen before, including the fact he expressed regret for some comments he's made on the campaign trail this year. take a listen to the moment everyone is going to be talking about today.

>> sometimes in the heat of debate and speaking on a multitude of issues, you don't choose the right words or you say the wrong thing. i have done that. and believe it or not, i regret it. and i do regret it. particularly where it may have caused personal pain. >> reporter: so that is the first time we've heard that kind of tone from donald trump. oonl of analysts will be looking at that and said he never said i apologize. he didn't even say what exactly it was that he regretted. was it is kahn family comments.

was it something else along the way. no specificity here, but general tone of regret and effort to move past those comments and really hit hillary clinton hard with the idea that she needs to apologize for a number of things she's done over the course of her career. donald trump will be in baton rouge, louisiana which has been so hard hit by flooding and human suffering. we should see those pictures later on today. in other political news, the clinton foundation, bill clinton himself coming out last night and saying this, that the clinton foundation, if hillary clinton is elected president, will no longer accept foreign or corporate money, and, in fact, bill clinton himself will resign from the board and in either case win or lose there, the clinton global initiative, that big star studded gathering they do, that is over with. the last one will happen this year. the big change for the clinton foundation. that will naturally raise the question of if this is a good idea to do if hillary clinton is

president, why wasn't it a good idea to do when she was secretary of state. >> yes, exactlexactly. i don't have to say anything. secretary of state, not the second most powerful person. vice president, secretary of state, it's pretty close there. there was absolutely nothing going on as secretary of state. of course, if it's presidents, we really need to worry about whether there's influence. we didn't need to worry about that -- that doesn't compute at all. >> at some point they're going to have to admit. >> the clinton foundation politically is a possible area of weakness here going into november 8 because we have a number of different outstanding things that we haven't heard from yet. citizens united has been going after e-mails between the clinton foundation and also the secretary of state office when hillary clinton was secretary of the state. we also know the clinton

foundation was hacked by entities unknown earlier this year. we have tnot seen any e-mails released. if those e-mails exist and are released later on in this campaign, presumably, there could be some areas of damage there. this could be an effort by the clinton campaign to get ahead of that and say forget about the clinton foundation. we've already buttoned that up. see if that works. >> i'm really up to speed on trump saying that obama was the founder of isis. i've seen some coverage there. do you have a number of days since the last hillary press conference? do you know what the number is. >> 54. >> it's quite a few. >> does that mean anything? should that mean anything to anyone? >> it means a lot o reporters. my colleagues out on the campaign trail want to hear from hillary clinton. >> i haven't seen it on the

cover on any maintain stristrea no one seems to be upset. is that the most transparent candidate in history? why isn't obama anybody writing about obama being on a golf course. >> i think donald trump is trying to highlight that. >> he's going there. >> he opened comments last night with the idea that he expressed solidarity with the people in louisiana. >> at this point is the difference in coverage. >> wait until you see what he does today. >> not him. where's the media. >> why isn't anyone hammering obama for not going down there. >> see what happens today. >> he doesn't do things just for cameras. he doesn't do things. he's above doing -- so he's above going down and showing compassion and concern. look at eamon's face. never budges. >> have a long day ahead of you. when we come back the science behind ear worms. the songs you can't get out of

your head all day. big business for advertisement and entertainment industries. tell you why they're so sticky and you the can never get rid of them. >> days away from the closing ceremo ceremony. plenty of commission in action. bring you the latest live from rio when rereturn right here on "squawk box." icomomts c cialisorse, top d a baroom? a pill?

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time for today's executive edge. we have songs that are hard to forgot. who let the dogs out is an ear worm. it gets stuck in your head all

day. you don't know how. you don't know how to get it out. there is science why some songs are more likely to stick than others. joining us now is david. thanks for coming in here today. >> i am especially prone eto th ear worms. what is going on? why does that work. >> it's like an esthetic experience gone rogue. some people call it a sticky tune. it should be called a brain worm. it's your your ear that does the hearing, it's your brain. about 90% of people have ear worms. just doesn't stop. pl plays. it's like musical imagery that's involuntary. >> why douz your brain do that. >> your brain is a complicated place. likes to play trick on you. little circuitry that keeps firing. you get a little piece of muchk in your head. and it keeps going.

typically between 10 and 30 pieces of music plays over and over. like the silt circuit firing. >> in the background. >> does it happen when you're bored? joe saying this never happens to him. i try to hear songs i listen to them and. >> it's really good. then you're a lucky man. if it happens to the songs that you like. >> i have apple music and i listen to it. then i've got something. >> it's more annoying if it happens with the songs you don't like. a sticky tune can stick in your mind and brain. >> is our brains like repetition. >> so our brains like repetition and music. the principal or music is built or repetition. a lot of songs we hear are built on taking a theme and playing it over and over. having varuati rations of the t. >> there's times i think of mccartny and lebanonlenen.

when a hear a melody the first time, i don't know if i like it or not. sometimes i wonder do i just learn that those notes end up being great together or were they great together right from the start? >> it's a little bit accidental. people have different taste. can't be too weird. sticky tunes or ear worms happen with music about typical lengths and typical pitch differences. >> some songs i hear the first time that i don't like and i end up with a favorite song. end up where i really like them. >> bay toechb's fifth. >> can i ask you more specific questions about neuro anatomy. you know how you can hear a song. >> you're an mit guy. >> you know you hear a song that takes you back to a time in your life, spatially, the storage in

your brain, is it near where those memories are stored? >> a scent too. >> scent, a fragrance, honeysuckle, i go back to my childhood. where does the palace\ palace tisty occur? >> different parts of the brain do different things. the brain is not a big place. it's the size of two fists put together. >> this is all in the cerebral cortex. >> the parts there's 89 billion cells in your head. each one has a thousand to 10,000 other leg go block connections. so the parts list of the brain and mind is really vast. we don't have the kwquantitativ chops to study it well. stored in the the cortex and other parts deep in the brain. memory is a very difficult topic. we all have this experience. the funny thing about brain science and psychology in general is that we tend not to

really understand the things we're all good at. so we all have brain worms or ear worms and we don't have a good understanding. we all have the experience of leaving our cell phone somewhere and not knowing 20 seconds later or not figuring out where the keys are. the daily things are not very well understood. the study is on complicated sfuf. we know very little about the stuff we do on a day-to-day life. that's the exciting part of brain science. >> what does happen when you puts something into memory? how does that palace tisty, the change result? is it more connections. >> in part it's more connection. it's change in connection. part of rewriting the code. there's a brain code. that's the way to do it. >> this music is tells us we're supposed to go to commercial. >> this music sticks in my head. >> coming up, trinity ventures

hungry for profits. bitting big on companies like starbucks and jamba juice. we're going to check in with andrew in rio. >> hey, we've got a lot more coming up from rio. nba commissioner adam silver. do you know what the official drink in rio is. cap reenia, i find out how they're made. check it out. >> the name means little country girl and this is the most popular cocktail in brazil. lime, sugar, ice and the liquor, a distilled spirit made from sugar cane. you can get it in the u.s., but

up until 2013, it wasn't known by the true name. back then, it had the label of brazilian rum. maers. w, ermillecondr iaving 2 boththack d thounds of mesy.th h rul rareticalinfoabout erdr iaving 2 of car om virtu anywre brreng w ird,u edour bres thility haveee& prec clks.

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welcome whaback to "squawk box." one of the greek yogurt company, they're not really greek, but it's a whole separate conversation. they launched a specific campaign here in rio and we're thrilled to be joined this morning by peter mcbegin is. good morning to you, sir. >> we've been talking all week trying to understand what the different levels of sponsorship are. you sponsor team usa. you use the ruing. you can't advertise the olympics? how does it work. >> we are sponsor and we sponsor team usa and official yogurt of

team usa. so there's lots of different levels and layers. >> what are you allowed to do. >> you can do anything. >> you have a couple of athletes as well. >> we have ten athletes. >> and in terms of the way you tried to use the olympics for the brand, it has been more about traditional advertising or more about social. >> i think that's in a way a false question because in addition to and no in lieu of. we have a tv component as part of the sponsorship deal and we have a campaign and a lot of great tv spots. over 6 million views on youtube and stuff, but more than half of our budget is dedicated to digital and social. >> you're doing something with amazon kindel. tell us about that. >> when you go to read your book, up will come an ad and you can direct order right from that ad. >> that's just this week. >> last to weeks.

>> you have been probably more aggressive than most companies are social media. one of the things booer trying to understand is who is winning that game. we talk constantly about snapch snapchat. instagram, facebook, twitter, how do you see it all playing out? >> i think again, a lot of brands and companies are using all different social media outlets. we use them all and we're very aggressive in social. we grew up on social. it spread socially and happened organically over the last ten years. we're very passionate about social media. we measure it based on teelt media, likes, shares, comments. we look at the dashboard every night. we have a realtime back in new york monitoring it. we do quite well jurunderspent because of of contents. >> i was surprised to see you a sponsor of this event given you

done this grass root effort then to become an official sponsor of the team. what led to that. >> a lot of talk about because you have a lot of money or big brand doesn't mean the olympics are right for you. it's right for us because the athletes eat our products at the training center. in a way the campaign is shining a spotlight on what's happening. when you have a brand linked to athleticism and training, you should lean in. >> we have to go, but just a suggestion, frozen. frozen oyogurt. we are a big family, we have thought about it. >> what about an ipo. >> you gave equity to all those employees. they have to have the exit opportunity. thank you for coming this morning. appreciate it. putting your money where your mouth is. we're going to talk about trinity ventures betting big on

investments with starbucks and jamba juice. bullet proof coffee. i like that idea. and pf chanks. going to talk about that when squawk returns in just a moment. ds valle fr alby to u frtrtrre invt,t, ivertyershs, anwe frtrtrretainecades arting stercono and the righennment anwe frtrin n yoratedes r siness to rivele hel y torrtoy

our next guest is referred to as a hollywood super connector and now a partner at trinity ventures. since their founding over 30 years ago, trinity has had 12

funds investing in 250 companies including starbucks, bulletproof. just to name a few. today 93 ipos. joining us now partner at trinity ventures where she has been focusing on the consumer product space. great to have you here. >> thank you. >> the consumer product space is very interesting right now because we see these very large behemoths buying little companies here and there. the dollar shave club. >> $1 billion acquisition. >> you have a vision of why that kind of deal is happening. explain. >> trinity ventures has a strong background in -- >> consumer product groups. >> correct. we did jamba juice and pf changs. one of the most recent is gobble and bulletproof. and what's really interesting to me is just how these entrepreneurs are coming in and

solving problems. so i think what's great -- one for gobble is the ultimate meal hack. >> meal hack. that's how the millennials talk about things. >> what is that? >> a hack is something that's easier. >> instead of -- >> all right. >> it makes life easier. when i say it's a meal hack, ultimately this is a way to cook a fresh, healthy meal in ten minutes or less. >> how's it different than blue apron? or plated? >> blue apron takes like 40 minutes to cook those meals. >> if you're slow like me, it takes an hour and a half. you look at amazon and walmart and how amazon is disrupting walmart. it's just saving you time, right? >> but the opportunity for you guys as i understand it is maybe in the old days the p&gs did a lot. now they do mostly marketing. when you're going to have new product development, it comes dpr the entrepreneur who then

turns to you guys. >> right. when you look at unilever, for example, they spent a billion dollar acquiring dollar shave club. a billion dollars on another. but eight billion on marketing products. a good friend of mine who is a co-investor with us on a bunch of deals always says that innovation has been like, literally, given to entrepreneurs. like, they have just outsourced their innovation to entrepreneurs. we did starbucks back in the someday. i'm sure every major company wishes they would have acquired starbucks. they're everywhere. and i think it's interesting with companies like gobble, for example, that, you know, are just, like, disrupting the way that people are eating every day. disrupting the grocery market. >> sure. >> i mean, they own dinner times. that's what's so amazing about them. they own dinner times. >> i am excited to hear the entrepreneur being in charge of innovation. >> to be fair, procter & gamble

spends $2 billion on rnd. that's not chump change. >> relative to the marketing. >> yeah. i mean, the marketing spends are huge. >> thank you so much. >> thanks. >> good luck with all the ventures. >> cheers. >> we want those entrepreneurs to do great. when we come back, a new tone for donald trump? the candidate expressing regret for the comments that have caused personal pain in the heat of the debate. we will talk politics with former governor bill richardson and betsy mckay. a in therotope ere jncn, y jundmckin our jkei? recom the cee fodotiackea peect c. breathable strch i weo even bette

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crude climbing. futures, though, headed lower. and red arrows in europe.

we'll get you up to speed on what you need to know ahead. plus why one is betting on botox for big returns. is the car market losing speed? robert frank joins us from one of the nation's biggest classic car auctions with a look at why auction sales are slowly declining. plus where does your state rank when it comes to beer? the list of names to watch straight ahead. second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with becky quick and michelle caruso-cabrera. andrew is in rio covering the action at the olympics and going to a lot of the events down there. a method to his madness. you're having a great time down in, sorkin. >> we are having a great time. >> you are.

i never should doubt -- i was like my god you're going to rio. now i see. i see. the futures right now are indicating -- yeah. yes. the noggin. down about 60 points. suddenly higher oil prices are supposed to be bad for equities. this is maybe more about the new idea that maybe it's not 2017 when we get the additional rate hike. maybe it's on the table. >> because of john williams in the commentary. >> yeah. but they're dependent on every data point. >> if they're looking at inflation, if it's not toward 2%, that will be the next thing. >> if you're looking for a weak economic number to cause them to back track on this latest hawkish talk, don't count on it with the election coming up. they're going to be great numbers coming out. believe me. believe me. there's going to be great -- >> huge. >> believe me. there's going to be great numbers coming out. we know why. >> we'll see. let's get you caught up on

other stories making news this morning. rebounding this morning. of course yesterday these prison stocks saw the steepest decline they've seen in their history down by more than 30% for each of the two major corrections firms. you can see corrections this morning up by about 10 cents. the declines yesterday came after the justice department recommended that the federal bureau of prisons reduce its reliance on private prisons operators. the company's holding a conference call later this morning to talk about a possible financial impact and what that would mean. app lot of people are locked up in state and local prisons instead of federal prisons. this changes the landscape. there is no economic data on the calendar today, but we do have one fed-related event. jaim bullard is going to be talking about the economy and economic policy at a conference this afternoon. another fed official john williams says a september rate

hike makes sense. he says waiting too long to raise rates could be costly for the economy. if you leave it there for too long, he said, the police show up. one more corporate story for you today. viacom and sumner redstone have reportedly agreed to terms of a settlement. this would end b the battle for the control over the mogul's $40 billion empire which includes viacom and cbs. felipe dauman will leave and receive a $72 million severance package. over whether or not redstone had the mental capacity to make the decisions. as a result of the settlement, redstone and his daughter are now in control over viacom's future. team usa winning a lot of golds, not a lot of popularity contests. brazilian police say four olympic swimmers fabricated a story about being robbed at gunpoint including ryan lochte

who first told the story to matt lauer and billy bush. he's back home in the united states. andrew ross sorkin is in rio and is following this developing story. >> you are right. the fallout continuing right here after four members of the u.s. swim team including ryan lochte had claimed they were robbed over the weekend at gunpoint. now rio police saying not true. they said that there was no robbery and that it was an act of vandalism at a gas station on their part. now, the usoc apologizing overnight to the country of brazil for the actions of these four athletes saying in a statement, the following. the behavior of these athletes is not acceptable nor does it represent the values of the -- of team usa or the conduct of the vast majority of its members. we will further review the matter and any potential consequences for the athletes when we return to the united states. it went on to say -- and this is the important part for the folks in brazil -- that on behalf of the united states olympic

committee we apologize to our hosts in rio and the people of brazil for this distracting ordeal in the midst of what should rightly be a celebration of excellence. and given all the concerns about security, that was the one piece the people here so desperately wanted to hear after that announcement yesterday by the police that, in fact, this entire story was not what it was said to be. in the meantime, let's talk about some of that excellence. we have some great sports going on here. two swimmers involved -- actually, before we get to the swimmers, i want to tell you two things. gunnar bentz and jack conger who had been taken off their flights late wednesday -- their passports were taken. they're going home. that's the good news for them. on the other side of this, however, one of the other athletes is going to end up paying $11,000 to go home. that deal being worked out overnight with brazilian authorities. so that's what's going on here

with this soap opera that's just dominated the headlines around the world. meantime, let's do talk about the sports, if we could. because that's why we are here. the first one, jamaica's usain bolt. i don't know if you saw this video. it's unbelievable. he turns 30 this weekend. mentioned his age before. he's one of those athletes that he's now the fastest man in the world. blew away the competition in the 200-meter field winning gold in 19.78 seconds. he has won the last three 100-meter and 200-meter olympic titles. bolt has eight career medals and goes for his ninth tonight. he's going to be running the 4 x 100 relay. you're seeing people in az hometown just go wild. >> awesome, awesome. phenomenon. as he always is, awesome. >> i'm not surprised. i knew it was going to happen.

he's the greatest of all time. >> and the home country of brazil taking home the gold in beach volleyball last night against italy. it was the fifth gold for brazil during the games and the first in the event since 2004. rain down there at copacabana beach. man, was that the hot ticket to be at. the u.s. now wins its 100th medal of the 2016 games in the women's 400-meter race. it marks the fourth straight time that the u.s. has now won 100 medals or more at the summer olympics. and then finally a little women's basketball. joe was mentioning that i've tried to see some things while we've been here. i was at this game. the united states defeating france 86-67 in women's basketball semifinals last night. they're now advancing to the gold medal game against spain which happens saturday afternoon. the u.s. will be going for its

sixth straight gold medal. it was the 48th straight olympic win. i got to tell you. these women, they drain three pointers like you've never seen. it was really quite remarkable, guys. >> you're pretty good at this sports thing, sorkin. i mean, you're okay at business news. but i think you're good at sports. >> i've got to tell you. we've had so much fun down here, it's -- i know you don't think i'm into sports all the time. but we've had a ball. >> and you've been nailing the names too. some of those are -- right? and there's no hesitancy. you're nailing the names. huh? >> but i will tell you something. nbc does such an awesome job. they have lists and there's a research team down here with nbc sports. they do the pronouncers. they do everything. every stat. they do -- it's unbelievable what nbc is. >> the structure is fantastic. >> but think about some of the teams from countries all around the world and stuff. and you know what we do here

where we'll say the company's cfo and then we won't even do the name. you can't do that. you can't keep saying on the volleyball team, that person's really -- and how about that person over there? you can't do it. so if you do go out, though, and something like you can't get in a bathroom or something, just don't compound the issue by making -- okay? you'd never lie to your mother. >> always tell your mother the truth. if nothing else. >> all right, andrew. thank you. >> i'll see you in a bit. >> when do we see the tae kwon do? >> we'll show you that in the 8:00 hour. also we should tell you adam silver from the nba is coming up in the 8:00 hour. we'll talk about all he's doing and really just these amazing u.s. basketball teams. >> i think we know that tae kwon do guy looks big, but taking you on, he dodged a bullet with you.

>> i told you. the spoiler is that i'm here. but i don't know if he's going to be able to compete tomorrow. >> he's limping around. i know. all right. thanks, andrew. >> i'll see you. here we go. back to this. hillary clinton and donald trump trading new attacks on the campaign trail. hillary clinton still leads donald trump in the latest nbc news survey monkey weekly election tracking poll. it's hard to say that -- >> and feel serious. >> yeah. but okay. survey monkey. i think monkey, i think all kinds of strange things. they throw poop. states are still a tossup, nevada, ohio, iowa, georgia, florida. joining us now betsy mccoy. she was just named as part of donald trump's economic advisers council. i said it right. >> yes. i'm a supporter. actually i'm a columnist so i declined that appointment. >> i saw your name though.

but i didn't write that. and new mexico governor bill richardson who is also a former ambassador to the u.n. i got my iphone out for one reason and i can ask both of you about this. it just occurred to me, i'm looking at the polls on real clear politics. they come out every day. these are from yesterday. pugh, clinton 41. the next one, clinton 41, trump 39. the next one did not include johnson and stein. clinton -- this was the reuters. clinton 41 -- that number keeps coming up. 41. that's not a great number, is it? that's a terrible number. governor? well, he's down by two or three or five or whatever. but the number for secretary clinton is 41. >> but i think what you have to look at is the battle ground states. i mean there are already a majority of states that are decided. but i was just in washington yesterday and there's serious

concern among republicans. and i have a lot of republican friends including the lieutenant governor. i think so. anyway, that they're worried now about losing the senate. i mean, there's serious worry that the house is probably going to be okay, lose some seats. but the senate is in play. and you look a lot of these battleground states like illinois, nevada, states like there have been republican inroads where, you know, hillary's substantially ahead. >> what do you think? >> gloom and doom. 80 days and three presidential debates to go. in politics as you know, that is an eternity. this election will turn on the economy. and voters really have a chase. class warfare or growth. just as one example, donald trump has offered to slash corporate tax rates which we know will raise wages, income,

growth, even tax revenue in the long run. but hillary clinton is running ads saying that she's going to make -- and she's wagging her finger. she's going to make corporations pay their fair share. what could be their fair share? they already pay the highest rates in the world even after all the, quote, loopholes. higher than all but 15 of 187 countries followed by the world bank. >> that probably works for her base though. maybe our viewers -- >> but it's cynical because it's a lie. >> it is cynical. >> it plays into the crooked hillary thing. >> but that's all part of the people that are on wall street or the people that own businesses or the people that aren't die hard progressives that are maybe somewhat conservative that are backing hillary right now. they all say the same thing. we know how she's going to govern. we know how she's going to govern. she's going to govern like bill. >> as a start. i'm glad the lieutenant governor has joined the trump effort. the first thing donald trump

should do is, like, release his tax returns. that would help. >> here goes the tax shaming. i love it. >> and number two, look at what hillary is saying about the economy. she wants to boost manufacturing. she wants to keep jobs in this country. give manufacturing companies -- >> here's the problem. he says those same things. >> but you can't boost manufacturing when you're taxing corporations so high that they leave the country. >> no, no. i think the 1% and the corporations, they deserve their fair share of taxing. and that's what she's proposing. >> what did you think of trump last night? >> pardon? >> what'd upg of the new trump last night? >> terrific. i love kellyanne. corporations are the manufacturers. you can't clobber the corporations with the highest tax rates in the world and then say you want to boost manufacturing. it's not government that manufactures. it's the private sector. >> i thought she told me don't

let anyone -- she told me don't let anyone tell you corporations create jobs. remember that quote? >> but they do. >> no kidding! >> so let's look at the international front. trump wants to get into a war with china. a trade war. now, that's going to help. that's going to -- >> let's change the topic. >> well, this is important. >> neither side is espousing free trade at this point. so bill, let me ask you this. you want trump to release the tax returns. do you want hillary to have a press conference? it's been 256 days. what's she hiding? >> she's interviewed every day. she talks to the press every day. i mean, you know, reporters want to press -- >> she can grant interviews to the people she wants -- >> but she talks to -- you know, she's on every show. she gets interviewed all the time. she's been very open. >> i know that bill has a big heart. he's a progressive. and he cares about poverty.

we have 8 million more people living in poverty than when barack obama took office. 14.5% of our nation is living in dire poverty. the way to get them out of poverty is not to redistribute income. that's what hillary wants to do. it's to make more income, more growth. and we can do that with donald trump's tax plan. >> i know you don't think this is not about personalities but if ever i've seen an election driven by personalities, i think it's this one. >> i'll give you that. >> should the democrats be concerned about the new trump last night that despite the talk he was going to be more trumpian. in fact the new team has made him sound conciliatory. not this i'm the only one who can fix it. i mean, when polls are that close and this guy tries to start to appeal to the middle, you worried at all when she can't seem to budge? >> no. look, you can't be over-confident. but you have to look at numbers in the battleground states. you know, obviously he has to change his tone. i mean, he's had a disastrous

month since the convention. he's plunging in the polls. the campaign is in total disarray. >> what happens in august stays in august. >> and so, you know, he's saying one thing. he's saying he's going to change his tone. he regrets -- he doesn't say what he regrets. and then at the same time, you know, the staff is throwing out personal stuff about hillary's health which is not true. she is in excellent health. you know, so it's -- >> takes some weekends off in the middle of an election though. >> but she out-works trump on the campaign trail. i mean, i don't know where this weekend stuff is. >> so the polls got to a certain point and they have been narrowing a little bit even more recently. if it does become close again like it was in july where by some accounts trump was actually up for most of july, are you going to say that the polls matter? or they're not going to matter at this point? >> look, i've been in elections. so has the lieutenant governor.

polls do matter. because they're generally accurate. >> if it goes the other way -- >> you've got to be realistic that polls are important. but it's also important your get out the vote operations. i think this is where hillary has an advantage. she is better organized in various states. >> that's right. but the clintons are also playing defense on her character. you know, they've just put out this claim that they won't allow the clinton foundation to raise money from foreign governments and corporations. >> that's a little late, isn't it? what's the difference between a president and secretary of state? >> exactly. you look back in 2009 at the hearings where senators from both parties were so concerned about the appearance of mrs. clinton selling the government in order to get money for the clinton foundation. and she was evading and bamboozling and refusing to provide disclosure. >> when hillary was secretary of state, she wasn't on the clinton foundation. she joined the foundation

afterwards. >> question, but her husband was. come on. put your head on the same pillow. you're married. i know what goes on. >> do you know that far fact? you know that for a fact? huh? you have evidence of that? >> touche. >> that clinton foundation has done a lot of good. a lot of good on malaria and diseases. >> oh, please. >> on population. a lot of good things. >> they sold u.s. government influence everywhere in the world. >> no, they don't. >> governor, lieutenant governor, thank you. >> good to see you. >> charming. all right. coming up, crude back in bull market territory gaining more than 8% this week. trading block is coming up. futures right now suggests negative open. dow would open lower by 53%.

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we've been talking about it all this morning. a approaching 50 buckets. what happens thousand? >> we're probably going to touch 50 bucks. i think we'll ring the bell before we can head down lower with the situation with opec and the non-freeze deal is bare. >> so you think this whole rise has been this job owning about whether or not there is going to be a potential freeze deal and when it goes away? >> i have to say, it was a perfectly well timed comment at a moment when the report was at a short position in futures. and a lot of folks -- when the oil markets is loaded to one side, it reverses typically. and that's what you're seeing right now. i think that's still going on. the fundamentals really undermine the whole argument. everybody's pumping more every day. just this morning we learned that northern iraq output is back on line. 70,000 barrels a day. i could give you a list. >> the higher price draws more production. >> included the u.s. which had

its highest jump in u.s. output since may of 2015 of 150,000 barrels a day. a function of the big rise we've seen in the recount. >> where does it go? >> i think we're going to go back down to at least $40 and possibly the mid-30s. i think it will be the washout that will set up a broader are and higher, more stable prices for next year. >> kathy, currencies. that seems to me the even bigger driver of the markets at this point. at least it seems like the central banks of the world are fixated on the currencies and their inability to control. >> absolutely. currencies are impacting oil as well. a big reason oil is doing so well is the dollar is so weak. what you're seeing is is central banks are getting desperate. they're struggling to increase stimulus to no avail. i mean, there's been no significant improvement in local economies. i think in many ways they're at a point where they're going to

go off the hand and give up. i think the federal reserve is taking a back seat approach. i think that's the reason the dollar's been punished this week. we had a good set of jobs data. now we're in a lull with retail sales extremely weak. and i think in general if you take a look at where the dollar is headed, yes, the fed policy is still stronger than everyone else. but we're not getting a hate hike until the end of the year at best. >> despite what was said or not said. have the japanese given up on interest rates? is that experiment over? we hear rumors and talk that central banks realizes this destroys the banking system. maybe that's not what we wanted. >> the banking system is extremely important to japan. i think they're going to fight going to negative interest rates as much as possible. we've got a big meeting next month. and everyone's thinking about whether or not they're going to

be able to have enough bonds to buy. i think they're going to fall short again. and i think that's part of the reason it's so high. they don't have much options from here. >> bob, what's driving gold? the whole conversation about central banks and what's happening with currencies? or is there anything fundamental at play or are those the fundamentals? >> i hate to beat a dead horse, but it's the fed at this point. it's the double speak. this week we had the minutes but we also had them come out hawkish. and then you have bull lurd lard saying we're going to do one rate increase fwhienz -- >> so it's at 1350 right now. what do you think it goes to? >> i think it will go -- traders will keep their eye on what yellen says friday. it's going to be highly

anticipated. the overall sentiment the bulls are in control. and it has to do with what previous guests touched on. the fed and weakness in the dollar at this point. and the fight to safety. you saw the dollar trading higher, bonds trading higher. gold trading higher as well. the one thing i see right now that's holding gold back, it is bullish but it is the equity markets. we make new highs, it feels like, on a daily basis every other day. but that has kept a cap on gold. had it not been for the equities as strong as they have been, they would be trading at -- >> because it serves as competition. guys, lady, thank you so much. bob, kathy, and john. >> coming up here, apparently it says it's friday. and apparently i don't know -- i haven't confirmed this. but it's 5:00 somewhere. >> it is. >> so where does your state rank when it comes to beer? we'll have the list after the break.

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there are a number of earnings reports crossing the tape just in the last few minutes. farm equipment maker deere earning $1.55 a share for the latest quarter. that's well above estimates. deere raising full year forecast more than reversing the cut that it made in the outlook just three months ago. benefitting from higher prices and cutting costs. and that stock up by about 2%. foot locker 4 cents above estimates. the athletic footwear and apparel maker saw an increase when it came to the comp store sales. shares up by 3.3%. and estee lauder coming in 3 cents better than the street was expecting. estee lauder saw -- stock though down by 3%. you've probably wanted to know this. i know i did. where does your state rank when it comes to beer? thrillist has put out a list of

all 50 states according to their beer. the criteria here quality and quantity both mattered. but quality was a bit more important. plus states that played a historical role in american beer were given a bit of a boost. so who is tops? this is wrong. cincinnati has really always had some great beer. oregon was first. >> that would not have been my guess. >> because of the craft brew revolution. and -- >> before the revolution? i missed that. >> yeah. >> california is a big state. >> california is a big state. and california and michigan were producing while i was in college some good stuff. california was in second. sierra, nevada lagunita. and firestone are some of the names there. and third, colorado which of

course you think of coors. but these are i guess craft beers. it's the home of new belgium, oscar blues, and governor. so who was 50th? mississippi where the brewers are basically non-existent. >> you get a boost for historical role in beer. wouldn't you think an east coast state would be up there? >> or st. louis. >> like yuengling or pennsylvania. >> because of anheuser-busch or something? i would have figured colorado because of coors. pennsylvania. but cincinnati, man. there was shanling, burger, wiedeman. >> every area had its own brew. that changes i think right after prohibition. washed out the small guys. >> the only problem with those beers, a lot of them were 3.2.

>> 3.2% alcohol. >> which used to not be that big of a deal. i used to think when i was in high school and beyond, i can't even -- i can't get drunk on 3.2%. but you can. >> people used to drink on the job. you'd have a beer at lunch. >> a martini. >> a couple in the brokerage business. topped off -- >> a girl drink, dude. >> says the guy who now drinks white wine? >> yeah. i had to start with margaritas. >> i say stereotypes to hurt people. >> to get a response. when we return, we have a look at some of the most expensive cars on the auction block. >> coming up, modern supercars hit the auction block. we'll look at some of the fastest most expenseive cars

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welcome back, everybody. the market for classic cars has been losing speed over the last six months. robert frank is live at pebble beach concourse. he has more on what's been happening and maybe what this tells us about everything else when it comes to the markets. >> yeah, becky. you know, this is the center of the car collecting universe for the next three days. thousands of e the wealthiest collectors come here to pebble beach. there are car shows, car races, and of course the most expensive auctions on the planet. this year over 1200 cars expected to sell and this year's total of around $370 million is slightly below last year's. and it's the latest sign that the collectible car market like the wine market, some of the other collectible markets is showing some signs of slowing after the blistering pace of

2013 and 2014. >> the market is really strong. there's some cautionary notes going on around a lot of the auctions this weekend. i think that's fair. there are lots of things going on between brexit and currency challenges and it's an election year. >> now, over 120 cars are expected to sell for over a million dollars this weekend. and seven of them are expected to break the $15 million mark. so a lot of big dollar cars and a big star of the weekend, surprisingly, is not a ferrari this year. it's an alfa romeo. could sell for between $20 million and $25 million. the other possible top seller would be this jaguar. it's a 1955 type d roadster. this could sell for $20 million to $25 million.

could be the most important jaguar and the most expensive british car ever sold. and of course we have goody and company. it's a 1959 ferrari nap would sell for $18 million to $20 million. we are at mecum. these guys are selling over a hundred cars. a big test this weekend are the modern cars. this is the 2004 maserati. big test whether this can break $2 million. and the 1980 ferrari, this is $2 million. we can watch this live over the weekend on cnbc. this auction is going to be broadcast on cnbc this weekend, guys. back over to you. >> wow. cool. >> so you are -- you're not actually in pebble right now. you're close. you're in monterey downtown right in the middle of monterey? >> no. >> where are you? >> we're at the monterey hyatt. we're actually on the golf course at the monterey hyatt. when the sun comes up in a couple hours, we're going to

show you an amazing shot. we are actually on the golf course at the monterey hyatt. we'll show you all the cars over the golf course. >> monterey peninsula golf course? you're not at -- or pebble beach? >> monterey peninsula. >> yes, yes, yes. great place. and you have nice weather. but i'm worried because you're using up some of the nice weather. in february we need it. right, becky, when we're out there. >> it's been 68 to 72 degrees out here. >> perfect. >> it's been amazing. i'm surprised given the market uncertainty the crowds are strong, the buyers are out there. it's going to be a big test. $370 million in three days. we'll see whether they make it or not. and you'll get to watch it live on cnbc. >> excellent. we will be watching. >> go over to the lodge if you haven't been to the lodge. have some of the prime rib chili. >> i was going to say the chili. robert, thank you. we will see you soon. >> all right, guys. let's get back to covering

some of the other markets. it has been 30 days since the s&p has moved over 1% in either direction. so where can investors find opportunities besides if they're looking at cars? joining us right now is karen firestone. karen, i know you have three stocks that you really think are going to out perform. why don't we start with hd supply? this is the business that goes after contractors whether it be residential or commercial. is this a bet on resurgence or a boom in i would being or is this just about hd supply itself? >> well, it's about specifics that relate to hd supply such as deleveraging which is an important factor for them. but also we're in a very good housing market right now. so the contractor business whether it's about residential construction, renovations, hospitality construction, or infrastructure is doing really well. and as we know, both candidates are talking a lot about the infrastructure spent that they would promote.

and whether or not that happens, that would be a potential catalyst for hd supply. it's a company that came out of home depot with a lot of debt. it's reducing its debt. and a low interest rate environment. we think they've got a chance to refinance at much lower rates in the coming year. >> it trades at about 13.3 times this year's earnings. you think the multiple's going to go higher? or you think the multiple is going to come in better than next year? >> i think both can happen. also next year's earnings should be 11.2 or so times earnings. so it's a cheap stock. there's just a lot of skepticism about it. we think it's worth the risk. >> allergan is also on your list. this is really interesting because this has been a company that's been so closely followed. the deal with pfizer on again, off again. why do you like this company right now? >> well, allergan as you know has been a deal stock in the press for over two years. it's over 20% below its 52 week high. and this company now in terms of

health care generally is one of the names that really can produce some nice growth over the next few years without having to rely on $100,000-plus drugs. they're not in the cancer business. they're in the discretionary business of aesthetics where the baby boomers all around the globe are spending more and more money and it's out of pocket expense like botox. and also the eye care business. one interesting thing about eye care is a come pet tor is bausch and laumb. there are major areas. allergan has earnings growth. it's a stock that's down. it's bucking the trend in terms of high price stocks. >> does it require an economy that continues to at least kick along at an improving rate because it is discretionary? >> i think to some extent b.

they find with botox people spend the money on their looks and they don't stop because they're worried about a recession. >> all right. karen, thank you very much. we are out of time. i know your third big is slumberje. that has been a bet on oil prices which have been 3iking up. >> it's a name we started to buy in january and continued to buy it. we think it's a growth idea in an environment where the price of energy is going up. it's going to stay, we think, in this range. but oil companies have to begin to spend and they are the best. even though it's a high price stock on a multiple basis. >> thank you for your time today. >> thank you. all right. up next, we're going to head back down to rio. andrew will join us with a preview of what's coming up. andrew? >> hey, joe. when we come back, we're going to talk about hiring olympians. we have global vice chair of iwa joins us live with an olympian right here in rio to discuss

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welcome back to "squawk box." getting to the olympics takes more than practice and hard work. it takes a lot of cash. so the ioc and adecco have teamed up. steven landon is a member of team u.s.'s tae kwon do team. >> the cost to make it to an olympic team is anywhere from

$60,000 to $100,000 a year. and that's just based on travel expensing, training, coaches. >> to help pay for his training, he needed a job. which matches athletes with employers. >> many of the athletes struggle. because they're not funded. they're not paid. >> originally i got hooked up with adecco who basically got me an internship at general electric. >> placing them in part-time and temporary jobs that won't interfere with training. >> trying to find the bridge to do it part-time. because you have to have a flexible job so it has to be something that can allow them to compete on long weekends. maybe train in the morning and come in in the afternoon. >> since 2005, the program has worked with 30,000 athletes finding them jobs with a broad array of companies including general electric, coca-cola, and hilton. >> the good part of that is

through that career usa program, they set it up whatever company's interested has an understanding one month i might need to pick up and be gone for a week in korea. >> how do you maintain a job and do this? >> not a lot of sleep, first of all. it actually works both ways. with ge, they gave me this great leg up on my competition because they taught me this analytical mind-set of analyzing the problem, figuring out a solution that would actually fix it, and then moving on from there. so again, it's that symbiotic relationship. i brought a lot to the company with, you know, just my never give up attitude, but i took so much from it that it's actually applied to my sport as well. >> and many olympians here in rio spent their entire lives focused on their sport putting their careers on hold and oftentimes on the back burner. now ey is announcing a new

program. to tell us what they're doing is nancy atobello. and also an olympian with us here this morning, guys. grace is an olympic rower and the new ex-edition to ey's internship program. >> good morning. >> is this a baseball card of you? >> a trading card. very popular item. >> very popular item. tell us about what you're doing and what you're doing with her. >> well, we are really excited to announce the program today. we wanted to create an intern program for retiring woman athletes following the olympics. grace is one of our great new interns. we have eight starting around the world. >> how do you pick them? >> we worked with athlete career transition and they spent a lot of time working with us on who are we, what are our values, what are we looking for, who succeeds the best. and then they spent time screening and interviewing candidates and came up with an

amazing group of eight extraordinary women who will be joining us around the world. >> were you looking? what was going on here for you? >> well, i was approached by a.c.t. during the olympic year you are completely focused on your sport. so to get that phone call, back of my mind i was thinking about what's next and getting that phone call from them and working with an amazing company like ey it was thrilling. >> here you are medal winner. and now you're going off to a job. are people just going to look at you and you'll be like, i'm an olympian. >> i'm going to look at this and say i can't believe i'm working at ey. i'm so excited to join you. >> tell us about this in terms of the cost. we were talking about the last segment, i don't know if you could hear it. how much does it cost for you to actually just compete? >> so we live with host families on the rowing team in new jersey. so i live with an 80-year-old woman who hands me the paper every day and tells me to get ready for the day and train. costwise, like, a lot of it is

to food, to be honest. when & jerry are my best friends. >> how much do you plan to still row when you're working? >> so i'm going to be staying fit still. just kind of seeing what happens with things. >> you guys going to do some rowing together? >> i'll be there cheering for her every day. >> before we go, you have to tell us one thing because it's been asked a million times. we talk about the k-tape. this is some of the stuff the volleyball players wear. what is that? >> kineseo tape helps with bruising. in rowing it's a repetitive motion sport, so k-tape helps hold you together. >> congratulations on all you're doing here. congratulations with the project. we hope it goes well. we wish you luck with it. >> thank you. >> when we come back, we've got more coming up on "squawk box." we can talk markets. and later back here in rio, we're going to talk with adam silver, the commissioner of the nba.

we're back in just a moment, guys. stirred it... mm-hmm. drowned it again... mm-hmm. and now just feel if it's cold. yeah. cool. [camera shutter clicks] [whistling a tune] smokey just gave me a bear hug. i know. i already posted it.

a duel settled in viacom's "game of thrones." sumner redstone reasserting control. the details straight ahead. a new campaign tactic for

donald trump. remorse. >> sometimes you don't choose the right words or you say the wrong thing. and believe it or not, i regret it. >> we'll bring you the latest in the race for the white house. plus hitting the court with nba commissioner adam silver. he's going to join me live in rio. the final hour of "squawk box" kicks off right now. ♪ live from e the most pufrl ci -- powerful city in the world, new york, this is "squawk box." >> welcome to "squawk box," everybody. this is cnbc, first in business worldwide. andrew is reporting live from the olympic games in he's owe. hello, again, andrew. we're going to get back to him in a moment. first let's check out the equity futures this morning. it's the end of the week and at this point some of these

declines would make it a losing week for the markets. however, if you could turn things around, nasdaq would see its eighth week up in a row. right now the dow futures down by six. and the nasdaq down by 15. we're also watching oil prices which have steadily climbed over the last week and a half or so. you can see that wti is down about 10 cents. among our top stories this morning, a resolution in the sumner redstone battle is finally expected today. julia boorstin has been following that story for us. she has details for us now. julia? >> becky, after months of legal battles, sources tell cnbc that last night sumner redstone's national amusements agreed on a settlement with viacom ceo felipe dauman. removing the uncertainty that's been hangi ining over viacom. dauman will step down immediately and receive a $72

million severance package. this would bring his total compensation for the last ten years to nearly half a billion dollars. the deal also gives dauman a window in which he can present his proposal to sell half of paramount to the board. a plan that sumner redstone has opposed. tom duley will become interim ceo through the end of september. this deal puts sumner's daughter sherry in control of the trust and the board which will expand with five new members. with dauman leaving the board, it will have 15 members until they step down at the board meeting next year. this settlement does not resolve redstone's mental competency which has been at the center of several lawsuits with the addition about the direction of viacom. this idea we're expecting any time now does not override a

lawsuit by karen redstone. she is planning to proceed regardless of any settlement. but certainly the end of a long, drawn-out saga. >> she won. basically. >> sherri won. yeah. >> thank you, julia. right now let's head back to rio. speaking of winners, andrew ross sorkin covering the olympics for us. andrew? >> hey, thanks, michelle. we talked about a lot of headlines this week. no matter what, the headlines may be taking the world's attention from rio. the real story here is the athletes. we've the spent time with them talking about all sorts of things from what they binge watch these days to what they do to compare to compete. it's part of a segment we like to call ask an athlete. ♪ >> probably "law & order svu." it's my go-to. >> i just started watching "game of thrones." i'm on the first season, so i'm going to probably binge watch that. >> the last thing was

"homeland." >> i love "love & hip hop." >> obviously it would never happen, you need protection, but if you could fence in soccer gear, that'd be cool. >> i would say gymnastics. they have -- they sparkle. >> water polo because we are almost naked. >> mine definitely doesn't have the best uniforms. we have the worst uniforms. have you seen our -- we look like we're in bathrobes. >> i think golf. coming from swimming it's -- it doesn't look too physically challenging to us. and i think as a swimmer that's very appealing. >> rugby. i'd like to try it now even though i am an olympian in wrestling. not many people who have gone to the olympics in two different sports in the same games. maybe i could do it in 2020. >> invest it. definitely invest it.

bitcoin would be one of those and stable ands. >> if i have enough time, it would be gone. so i'll save some of it. then i'll definitely have to invest so the money keeps coming in. >> spend it? no. i'm going to invest it. >> i do a little bit of yoga, keep the mind focused. >> i find lay by bugs lucky so i have earrings. >> before every race i drink a coke. i don't know why i do that. >> i listen to a lot of death metal. i'm a huge, like -- i love jazz music but metal gets my hyped up. >> i actually don't listen to music. i just kind of -- you know, i like to just sit there and just hang out. >> like almost every european, of course i am with hillary clinton. but your country is your

country. you do what you guys want to do. >> if donald trump wins, i'll be very surprised. >> i think if donald trump becomes president, yeah, that would be an interesting choice. >> donald trump, no. no, no. >> hey, guys. i was giving our producers a hard time. one of the people that's been in these segments, guess who's not there. ryan lochte. we spent some time with him, but somehow he made it to the cutting room floor this morning. that's what's going on here. we're going to bring you a lot more sports and some of the other news from here throughout the program. and then adam silver is going to be with us in just a little bit from the nba talking about the worldwide ambitions for that basketball brand. >> all right. that guy, yeah, he looked -- he didn't look like he was still in pain at least. >> we haven't seen the -- >> we've seen a lot of teases of

it. next block we're going -- >> oh the tae kwon do. you will get to mock me forever. >> this is the longest tease i've ever lived through, i think. >> worth it. >> it wasn't on purpose. >> it's going to be great. zblit wasn't on purpose. we'll show you that in a little bit, guys. thanks. >> thanks, andrew. now to the markets. joining us now jonathan golleb and mark lehman. jonathan, what i think you're saying if i understand correctly is some of the negative head winds are starting to dissipate like the negative earnings we've seen in the last three or four quarters. that sets up what could be a positive moment for stocks. but you say don't do it yet. wait until it actually comes to pass. >> no, i think there were two stories here. one is no question about it, the last four quarters of negative earnings were all about the

energy sector. and that drag is behind us. so in the back half of the year you're looking at 4%, 5% growth. that's really the story. but the switch that i think is going to happen and everybody's looking for is post-election is there's all this chatter about a pickup in fiscal stimulus that's going to in some way push the market forward. while i believe that's probably coming, i wouldn't try to get ahead of that trade. because right now there's no specifics and there's no guarantee that that's going to happen. when it does, i think the market will take off. >> central banks have been screaming at governments to do their part and they haven't thus far. what would be different? >> first, fed officials don't determine what kind of fiscal you get. but hillary clinton has said in the first hundred days, she would do something. donald trump says whatever she'll do i'll do double. so that really could be the catalyst. and if we take the u.s. economy from a little over 2% to even 2.5%, the impact that's going to have on markets and confidence,

i think that can't be overstated. >> oh, heck. i don't know. if we just do some fiscal stuff for that, let's do more fiscal stuff and take the gdp to 5%, jonathan. >> i'm not a fan of it. i don't think it's great policy. but i think the -- >> really? >> 100% the markets will love it. >> for how long? then why not do what i said then? let's go -- why do $1 trillion when you can do $2 trillion? >> and if you listen to -- >> so that'll be 5% gdp. then the market will go to 40,000. that makes no sense. >> i think that's going to be exactly the issue is i think politicians with interest rates this low, it's going to be almost impossible for them to not say what donald trump which is when you can finance a bridge at this cost which is nothing, why not build bridges everywhere. so it's not a matter of whether i think this is good long-term policy. can people keep their hands off of cheap capital when it's very clear that the monetary policy is not having the impact they'd

like it too. >> but you still owe the principal. >> for a year or two -- first of all, if you pave a road and then pave over it again, you get more gdp. you get more earnings. >> michelle, what do you think? why not build bridges -- don't even use tablespoons when you dig holes. let's use teaspoons. we'll employ -- >> it's all on economic policy. >> so we'll have three people employed for every one person. >> it's all bad economic policy, but it doesn't mean it's not coming and it's not going to move the markets. >> it sounds like you're describing the fed. and look where we are. >> i mean, i don't know whether monetary or fiscal works. ic what works are growth initiatives that allow money to stay in the private sector. >> if you listen to the initiatives out there, it is general assumption that there's some maestro or puppeteer in central banks or government who can direct the economy. i disagree with that. what i do believe is that the markets are going to positively

respond just like they have to monetary stimulus. >> mark, are you lonely? are you going to make the effort to get into the studio next time so you don't just sit out there? >> i was waiting for joe to come to me. i agree with some of the comments. i think what you're setting up for in 2017 slightly different than 2016 is you're going to have the capital markets open up and you're going to see more technology ipos which i think will get more people excited about the equity markets. this is the worst respected all-time high bull market that we've seen. and i think you're going to see some of these technology stocks try to go public. but we've seen in 2016 is what i've been saying for some time between facebook and amazon. you have companies where internet economics lead to monopolies really quickly. i think you're going to continue to see that with some of the companies in 2017. and you're going to want to stick with winners we talked about on the show many times. facebook and amazon. i'll use facebook as an example.

when we started 2016, estimates have now gone up over 35% this year and over 35% next year. at least j & p's estimates have. i see no slowdown for facebook and i think you want to stick with that stock. >> so you're more -- obviously you're more bottoms up from what we're talking about here. so i don't hear you worried about just overall valuations anywhere. that can really cause you not to invest and it's caused people not to invest for the last six months when stocks have basically gone higher. >> listen, we care about estimates here. but when you're earning 2017 eps which is what we started with at j & p here at facebook, maybe estimates are not accurate. and they're bringing more money to the bottom line. as are some of the other companies that we've been highlighting here. if you can earn next year's earnings this year, maybe estimates are not where they should be. and they're keeping things a

little temperate compared where the actuals will be. look at them on the instagram side. i think that's going to continue to accelerate and they're stealing it from everybody else. right? again, what i just said. these economics lead to monopolies really, really fast. and i think that's not slowing down. >> okay. okay, mark. thank you. i was kidding. you can't get to here. thanks for getting up early. you're in san francisco. >> airplanes. >> there are planes. if you are back here, you can come in. jonathan, thank you. >> i will do that. thank you. >> jonathan, your plan would work even better in australia. because there's four teaspoons per tablespoon instead of just three. >> we can go metric and work it better. >> somebody said i might win a nobel prize in economics for the teaspoon effect. >> excellent. >> what? >> i was looking at next. when we come back, a swift kick right in the -- well, you

know. andrew takes on tae kwon do in rio. we will show you the video. and then inside the energy economy. eclipse resources ceo will join us. stick around. "squawk box" will be right back. >> this is an ear worm. to b

here we go. don't want to injure anybody. >> you're going to need this. this is a helmet. >> i'm going to need this? >> for sure. >> you're going to wear one? >> no, no, no. you look good, man. >> i just want to say first of all, i don't get paid enough to do this. okay. here we go. >> there we go. perfect. >> i don't want to hurt you. >> i appreciate that. high too. >> come on, baby.

it's good. it's good. we'll see whether he's ready for saturday. and steve landon is going to be competing on saturday. i tried to go easy on him, guys, because he does have to compete. he is an olympian after all. i should also tell you he plans to go to law school. so i didn't want to get into any legal issues with him in the future. that's why i tried to be as nice as possible. >> i noticed you were wearing a helmet and he wasn't. why is that? >> well, you know, it's a pretty face thing, really. no. we don't have insurance, that's why. >> you needed a helmet. y he needed a cup. your kicks didn't quite go as --

is part of the skill -- there is a move when you turn and run. is that part of it? because that was -- right? >> impressive. >> you lose points for that one. i asked him if i could go pro and he said there is a pro league, by the way. in europe and asia. not in the united states. some of these guys go off to become ufc fighters. >> yes. >> he's not. he's going to go to school. but anyway, that was our little attempt at tae kwon do and maybe more importantly humor. >> and you were alive for dukakis, right? you do remember the tank shot? you did that willingly. >> we have producers here who try to force things on you. they had this idea. >> they told you, you look great. >> they told me i look great. they told me it would be a great idea to get smacked around by a guy.

>> all right. good. thanks. >> what we'll do for tv. anyway, we'll see you in a little bit. >> we'll see you again hopefully in the next half hour i think. then you'll be back monday or no? >> i will see you on tuesday morning. we are going to stick around for the closing ceremonies and then we're going to be on a plane on monday morning. >> oh, okay. you don't have to stay down there because you've got to pay a fine or something. >> i don't have to pay a fine. we're going to try to avoid doing anything this weekend that would prevent that. but it's still early. >> all right, andrew. we'll see you in a little bit. thank you. >> see you in a little bit. folks, let's shift back to some business news. natural gas down nearly 2% this morning. joining us right now this morning is ben hobbert. ben, thank you for being here today. it's good to see you. >> thank you, becky.

thank you for having me on this morning. >> let's talk about that well. i know it's called purple haze, but what exactly is that? the longest on-shore lateral well? is that like the siphoning i remember from if there is blood or let there be blood? >> yeah, the well incidentally the well name comes as a result of letting the engineers pick the well names. when we drilled that well, we didn't know we were setting a world record. but it has about an 18,500 foot lateral productive portion of the well. it's about 7,000 feet deep. and the idea behind drilling that well was really to get the lowest cost per foot of productive lateral out of the well. essentially spreading out the vertical portion of the well and the pad costs over a greater amount of the production of the well. >> so far it's beaten your own expectations. it's been up and running about a hundred days and been more productive than even you had hoped? >> it has exceeded our

expectations. that was one of the tests in drilling this well was to determine if we would get the same recovery per foot out at those extended lengths. where it's harder and harder to place as completing the well. >> let's talk about the broader environment for energy. so much of what's been determined for stock prices has been the broader prices of energy coming down so significantly. and now stabilizing a bit. that has to be a lot of what you think about. do you have any forecasts for where you see oil over the next 6 to 12 months? or natural gas, i should say. >> sure. on the oil side -- and our company is 70% natural gas. but on the oil side -- and we do produce some oil -- in my opinion the market right now is unsustainable. we have most countries in the world producing at or near their full capacity. we have the major exploration companies, you know, the major exxons and chevrons drastically

cutting their budgets all over the world. and you have production down in the united states. where oil prices are right now in the 40s, there are very little places in the united states where you can drill economically. it's not a sustainable price. at the same time we have the includesing demand. so over time the market has to correct at least into the 50s if not the $60 range before you really see drilling pick back up. on the natural gas side -- >> go ahead. >> sorry. >> go ahead. >> on the natural gas side we've seen rig counts down 60%. so week in and week out when we look at the weekly storage numbers, we're producing 30 to 40 bcf per week less than the same period last year. and the market right now is undersupplied which is a good thing. because with last winter's weather, we went into the injection season over-supplied. and we are week in and week out

working off that over supply. we see gas prices next year to be in a healthier range. >> all right, ben. we want to thank you for joining us today. we really appreciate your time. >> thank you. thanks for having me. when we come back, we have more from andrew in rio. >> with just days away from the closing ceremonies, the olympics here may be coming to an end, but there's still plenty of competition and action. we're going to bring you the latest live from rio when we return right here on "squawk box." hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson.

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coming up, the art of cheese making. the ceo of irish cheese glambia is here to talk. stay tuned. "squawk box" will be right back. i'm anne. i'm a scientist. why don't you let me... and me... help you out? ♪ you're gonna hear what i say... ♪ i love taking stuff apart and building new things out of it.

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♪ couple of quick stocks you can watch this morning if you want. corrections corp. america. obviously you know why. says it's disappointed in the justice department that the government cut its reliance on private prisons. i think didn't they say no more, i think? >> that's the ag or the ig's recommendation. >> what did the president do yesterday? i thought he actually said no more. >> just for federal. >> okay. to discuss the potential financial impact. and gap reported adjusted quarterly profit at 60 cents per share. 1 cent above estimates. however, lower than expected

full year guidance and said it was not satisfied with the pace of its improvement. applied materials came in 2 cents above estimates. equipment manufactured also beat quarter guidance following record orders last quarter. >> that was impressive, joe. >> i'm asking you. there was -- there were screens up the entire time. when you're ranking whether you're happy that you're getting a read as a person on tv, if your face is not showing the entire time, is it as good as if you're just sitting there? >> from one megalomanic to another, ask for half. >> which is my better half though? >> you don't get a choice. >> full frontal. trade negotiations trade and

currencies swing. here to talk about the implications, the international food companies is schavon todlidge. she's head of glanbia group. now you're talking to u.s. investors. you're in ireland. >> yes. >> you use the euro. >> yes. >> i assume you sell a lot into the uk that uses the pound. >> indeed. >> that going to hurt you? >> the uk market for our operations isn't as large as you might think. it's a global organization. it's a market but actually the currency is limited for us as an organization. for ireland, of course, it is an issue and we're watching it closely. >> am i allowed to say i love the irish accent? i do. poor ireland. the eu loves to beat up ireland. your taxes are too low. you participate in a race to the bottom. they would like to harmonize tax

levels at a much higher rate. it's a race to the bottom when it goes down. you guys -- i mean, why does ireland want to be part of the eu when they're always beating you guys up? >> well, we're a very much of a believer in the eu. we joined it in 1973 and it's been a great membership for us. you know, our tax rate, we've had 12.5% corporate tax rate for a number of years. and it's a big part of attracting organizations into ireland. but it's just one of many things. we have a really good skill force in ireland. we've got great young folk coming up through the universities. so a lot of organizations look to ierld and look to the tax rate as one part of it. >> how much to sell to europe versus great britain and then take the united states. >> the united states is a big market for us. >> how much is euro base snd. >> if you take the uk, for example, of our sales, it's about 3% of our total revenue. so it's relatively limited. >> the pound is 3%.

and the pound and the dollar. >> we actually don't export that much from europe into the u.s. most of our activities would come out. >> so mostly -- you sell mostly to europe then? >> in ireland we sell right across the globe. so we sell to the middle east. >> i'm wondering why the euro makes the most sense for ireland. a lot of irish export company ifs you add what they export to great britain or to the uk and then add in the u.s., it makes no sense to have the euro. i asked a guy and i was asking him why do you have the euro not do you have the euro. plus look at what happened in the financial crisis. had the low interest rates and look what happened. >> the euro has been a good membership for ireland. britain is a big market for us but so is europe. >> they think they're geniuses because of that now. they're breaking their arm patting themselves on the back.

>> we're quite happy to be a member. >> i know you're not here to talk about all that. but the way the ecb punished the irish bank and the irish people took it and paid it, i feel like one of the great transgressions of history in economics. but that's not why you're here. >> we're a resilient company. >> get out while the getting's good. that's what we're trying to say. >> back to taxes though. you've been criticized for having a tax base in luxembourg. tim cook is dealing with this all the time. you're not paying your fair share. apple is of course using the irish tax code. why use lux embourg? >> our tax is 12.5%. but our group rate is over 17%. what we do because we have global operations we manage our tax globally. and we're compliant in all the jurisdictions in which we operate. >> but that's not

anti-patriotic. >> we don't set the tax laws but we comply with them all over the globe. >> it's been great having you. enjoy the show in the united states. coming in from kilkenny. we're headed back to rio. andrew, what do you have for us? andrew! >> hey there. when we come back, we've got adam silver who's going to be joining us. before we do, i want to show you something else. my ping-pong wasn't so good. my tie kwon do wasn't so good. but i'm pretty good at rock paper scissors. check this out. >> i don't want to psych you out, talk smack, get in your head. rock, paper, scissors, shoot. you give me a medal if i win? how many do you have now? >> three. >> rock paper scissors shoot. >> oh, man. >> rock paper scissors shoot.

>> oh. got me. >> wow. do i get to -- here we go. rock paper scissors shoot. rock paper scissors shoot. rock paper scissors shoot. wow. he just dominated me. ladies and gentlemen, another gold medal. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

welcome back to "squawk box" right here in rio.

team usa men's basketball playing the olympic semifinal today against spain. of course team made of nba players in large part. right now the nba commissioner adam silver joining us here in rio. thanks for being here. >> nk thats for having me. >> i assume you'll be watching this today. >> absolutely. >> and the rest of the weekend. >> hopefully they're going to keep going. it's single elimination now. but if they keep going, the gold medal game will be sunday. >> some people said they've been off balance. charles barkley has made comments about having maybe too many stars on the team. >> these poor guys. if they win by too much, people say why bother why are they here. if they win by too little, it's not enough effort or it's not the right team. they have to calculate the amount of points to win by. on top of winning wi, it has to the right margin. >> what does it mean for the nba brand or for the players? >> for the nba brand, it's not

just the u.s. we have players in their home countries. these are players competing in a sport that's popular in their own country. it's for young kids in those countries who aspire to play in the olympics. it draws them to the game. it creates global exposure because of the distribution of olympic content. it means a lot for our brand. >> the issue long-term it's not just an international brand in the u.s. that gets broadcast elsewhere. but do you think of it as something that's going to get played elsewhere. >> we do in the preseason we've been playing in china for a decade. we're playing some in spain this year. but it's a great question. we've thought about whether over time we should have affiliated leagues internationally. whether we should have nba teams and we would travel as the nfl now is experimenting playing in london. people may say they have a

franchise there. in the last few years as the technology changed. look at the quality of digital media now even on smartphones and tablets. so now for example in china where there's a 12-hour time difference from the east coast, when our games are on in the evening, it's commuting time in china. we're getting ratings from young adults commuting to work and love our games. just like if the united states where at the end of the day a small percentage go to games. why should it be different outside of the united states? we thought of primetime, if you're not on in primetime, that's an issue. but now that people in essence carry their televisions in their pocket, it makes our games available everywhere. down here in latin-america, for example, you know it's an hour difference from the east coast. we have a popular game. we go on espn down here. does it matter to have teams

here, it would be nice but i'm not sure it's necessary. >> l.a. trying to get the olympics in 2024. what does this do? how do you think about this olympics and the reputation of the united states, the professionalism of the athletes. we did have this ryan lochte situation. the nba players have been very professional thus far. >> thank you. >> how do you think about all this? >> well, i mean, look. i think first of all, things are bound to happen. a lot of young people couped up whether it's in rio or anywhere else. incidents are going to happen. i think overall it's very positive for an l.a. bid. i know you know casey wasserman. he was on earlier this week. this would be for 2024 but also the ioc recognizes the benefits to being in the united states. the number of fortune 500 that are bloebl sponsors for the ioc. peter is still -- i think it's the only olympics as far as i know that was profitable. and i think people realize l.a.

already has an infrastructure in place. so i think it would be great for the olympic movement to come back to the united states. >> u.s. domestic question. i sent you an e-mail the night you did it. you pulled out of charlotte for the all-star game in 2017. what went into that decision? did you speak to michael jordan about that? >> i spoke to him about that a lot. of course he owns the charlotte team and he was going to be the host. we spoke about many elements. either michael or somebody on his staff. at the end of the day it was a business decision. i think because of this law in north carolina that is perceived as being discriminatory against the lbgt. many of our sponsors and business partners and employees of the nba -- remember this is a large national organization -- told us they would feel uncomfortable with it being in north carolina. whether my personal politics are relevant, it's not something i

was not in favor of it in north carolina but putting that aside, ultimately it was a business decision. our conclusion was all-star the a celebratory event around basketball and it would be difficult for us to celebrate the game in that environment. >> i want to talk about pros, amateurs. we have a lot of athletes here wsh young athletes here. you talk about how nba players should be 20 years old as a minimum. the union has talked about it being 18. what's the difference to you? >> i think for us -- well, on one hand we're at 19 now so that's only one year out of high school. but for us even that one year provides additional maturity. that first year away from home. and also from a skill standpoint, having the opportunity to play, for example, the olympic coach here mike krzyzewski makes them potentially better nba players. and it leads from our standpoint to a better draft. it's -- and we see this issue internationally. until players play against other great players, it's difficult to

tell how good they really are. and so in the old days, we were drafting out of high school. and so our preference would be for these young men to have two years out of high school opposed to one. it's a compromise of sorts right now. and my sense is it's going to stay at 19 for awhile. but as you said, we would prefer it be 20. >> how hard was it to get all of these nba athletes to come down here for this particular olympics? i ask the question because there's so many in other sports whether it's jordan spieth or others who decided because of zika or other reasons they didn't want to come. >> i wouldn't say it was that difficult. some of our high profile players didn't play. lebron james didn't play. but that had nothing to do with zika. i think for lebron, he's been going six years in a row all the way until the end of june playing over a hundred games in a season. because he's been in the finals all those years. so i think he felt his body needed a rest. but for our nba players, they want to be part of the olympic movement. i think as to other athletes, everybody has their own risk profile.

i'm sympathetic to those who didn't come here. people have not been talking about mosquitoes. it's winter here. and so far hasn't seemed to be an issue. >> before you go, have to ask about the salary cap. $90 million. what's going to happen? >> we saw already kevin durant go to golden state. we had an unanticipated jump in the magnitude of the salary cap so it led to some player movement that our system wasn't necessarily designed to absorb. but at the end of the day the players get half of the roughly the total revenue that the league generates. we have rules in place on length of contract. what it means is we have a system where roughly half of the revenue we generate goes to the players. and so as business has gotten better and we generated more money, that meant the salary cap went up. i hope people understand the salary cap is a function of total revenue. take half the money and divide it by 30, that's the salary cap. we have new television deals and international deals so it led to

an influx of cash for the players. >> thank you for joining us. thank you and good luck to the usa in the nba. we've got more to come from rio. before we do that, we're going to head to california where robert frank is going to be test driving some very expensive cars. >> paul newman wasn't just a great actor. he was one of the great race car drivers. and this car which he piloted to second place at lamont could sell for over $5 million. we're going to show it to you and tell you why steve jobs also loved and sponsored this car.

we've just been hearing so much about how you're a digital company, yet here you are building a jet engine. well, ge is digital and industrial. like peanut butter and jelly. yeah. ham and cheese. cops and robbers. yeah. nachos and karate. ahh. not that one so much. the rest were really good.

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winning second place at he month in 1979. the portia he ran in that race coming up for sale could fetch over $5 million at gooding company. we talked to adam corow la who owns eight of paul newman's race cars about that crazy price. >> everyone looks at you and go, $5 million for a car. all right let's not call it a car. say $5 million for a bowling ball, what if that bowling ball is going to be worth $11 million in eight years. would you do it? that's your answer. >> now this car went on to win big races at daytona and see bring and was also very popular with steve jobs, the first car that apple computer sponsored on the racing circuits. jobs was a porsche fan, intimately involved in the painting of this car, the logo placement, so some are calling this the first apple car.

back over to you. >> that could be 5 million or so. amazing. i remember the logo now. so well. i like the new one a little better. that looks dated. but it will be good on a car, obviously. the rainbow colors. >> all right. robert, you don't play golf, do you, robert? >> i don't. i'm a tennis guy. >> all right. tennis out there. >> lots of good tennis courts for when i'm done today. >> you should at least go over to the lodge and walk out the back near the 18th green. will you do that for me and look at that -- >> i will. i will do that and take a picture. it's gorgeous. >> go to the right and see sea otters right there too. >> the lodge, a great -- the whole place, amazing. >> beautiful country. really great. >> it is. great place to host a tournament if you're at&t. i had to get the at&t in. anyway. >> thank you. enjoy it. when we come back the biggest

market movers. as we head to break check out oil prices, down slightly about 14 cents lower at 48.09. another ear warm for you, stay tuned you're watching "squawk box," on cnbc first in business worldwide.

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welcome back to "squawk box." donald trump striking a different tone at a campaign rally in charlotte last night, stuck to the prompter script and expressed regret for some of the words he's used during the campaign. >> sometimes in the heat of debate, and speaking on a multitude of issues, you don't choose the right words. or you say the wrong thing. i have done that. and believe it or not, i regret it. and i do regret it. particularly where it may have caused personal pain. >> trump says his administration would treat every american

equally and reject bigotry, hatred and oppression. trump is going to be visiting flooded areas in louisiana today. and he's scheduled to hold a rally tonight in michigan. >> before we go, andrew, wrap up your week in rio. how exciting? >> what a week. what a two weeks it's been. it has been remarkable time both in sports and, of course, this ongoing drama that's turned into its own story with ryan lochte and on top of that a number of business stories about marketing and sponsorship and trying to understand where alls the money has been moving. i am now talking about money moving, ralph lauren, having our own closing ceremonies right now since this is the end of squawk, but closing ceremonies will happen on sunday and we will be back on monday. but it's been a great time, twice, and actually, by the way before i let everyone go, shout out, sam wright, we've had an amazing producers who have been here, justin, karen sara on

makeup, bill over here, rob on the camera, stan who has been kill it, where's ned? not even here. we've had a great team that's put this whole thing together and we want to thank them as well. so that's our closing ceremony here on "squawk" from rio. >> nice of you to do that. probably nicer if you took everyone out to dinner for a nice dinner. i don't think just saying -- >> stan on audio just heard you say that and i will -- i will be buying dinner as well. so there you have it. yes. >> okay. everybody gets a happy meal i guess. >> at mcdonald's. and a coke. >> and a medium coke, andrew? >> we'll spring for a large coke. >> that a boy. >> extra large. >> good work. it was fun. >> we'll see you. >> a lot of fun. i was worried about you not being here this week because i was out the previous two weeks but it was like we were together anyway. >> we were all together. becky is back. three's company. >> you missed -- >> i'm chop liver.

>> oh, i'm sorry. you're going to be here next week at all? >> one day? >> monday. >> we will see you. okay. >> take a quick -- >> back in new york. >> quick final check on the markets, futures are down. have been down most of the session. down just over 50. even though they managed a small gain yesterday. we'll see you next week. see you. hope you feel good. hope everything works out for you. it's tough. i see it. very difficult. thank god. make sure you join us on monday. "squawk on the street" is next. >> thank god it's the women who do this. ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with sara eisen, mike santoli at the new york stock exchange, david faber and cramer are off but we will hear from david in a moment. weakness in the futures as the dow puts together its first back-to-back gain since july on thursday. retail earnings capping the week